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Can my application be rejected and if it is, what can I do?

Yes, there are a number of reasons why your application can be rejected.  Amongst other matters, these might include such factors as the land being the subject of a Government project, the land falling within a development zone; the land being used for non-agricultural purposes; the land being already leased to third parties who have not renounced to their lease etc.  You will be informed if there are any such problems regarding your application.  What you can do if your application is rejected depends on whether you previously already held a lease on the land in question.  If such is the case then you will continue to enjoy your previous lease.  If on the other hand you had no such lease there is nothing you can do.

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